Marathon formally acquires BP Texas City refinery

The transaction was first announced on October 8, 2012. The base purchase price is approximately $598 million, plus inventories valued at approximately $1.1 billion. The refinery will be renamed and referred to in future Marathon Petroleum communications as the Galveston Bay refinery.

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Marathon Petroleum has closed its transaction with BP
to purchase several assets, including the 451,000 bpd
refinery located in Texas City, Texas, the companies said on
Friday.

The refinery will be renamed and referred to in future Marathon
communications as the Galveston Bay refinery, according to a
news release.

The deal also includes a 1,040 megawatt cogeneration
facility, four light product terminals located in the
Southeast, retail marketing contract assignments for
approximately 1,200 branded sites representing approximately
61,000 bpd of gasoline sales, three operating intrastate
natural gas liquids pipelines originating at the refinery and a 50,000 bpd allocation
of BP's Colonial Pipeline shipper history.

The transaction was first announced on October 8, 2012. The
base purchase price is approximately $598 million, plus
inventories valued at approximately $1.1 billion.

The agreement also contains an earnout provision under which
Marathon could pay up to an additional $700 million over six
years, subject to certain conditions. The transaction is
expected to be accretive to earnings in the first year of
operation, the company said.

"This is a unique opportunity to acquire, at an attractive
price, a world-scale refinery on the western Gulf Coast
that is well positioned to benefit from the growing supply of
North American crude oil," said Marathon Petroleum
CEO Gary R. Heminger.

"The refinery and related assets should enhance our current
footprint by integrating well with our existing operations.
This transaction will provide MPC the opportunity to grow in
contiguous markets, expand our export opportunities and further
optimize our Gulf Coast operations.

"As our history has shown, our focus will remain on the safe
and environmentally responsible
operations of all of our facilities," he added. "We look
forward to providing quality products and services to meet the
needs of our new branded jobbers.

"We welcome all of our new employees at the Galveston Bay refinery and product terminals."

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